How does the SBA Mentor-Protege Program work, and who is eligible to participate?

The SBA Mentor-Protege Program allows an experienced business to provide business development assistance to a small business, helping the protege firm grow and compete for federal contracts. A protege must be a small business for its primary NAICS code. The protege generally cannot have more than two mentor-protege agreements over its lifetime. A mentor, including its parent and subsidiaries, generally cannot have more than three proteges at one time, and the term of an agreement may not exceed six years, including any extension (13 CFR 125.9).

Benefits for proteges include receiving various forms of assistance, such as management and technical help, financial aid in the form of equity investments or loans, and subcontracts under the mentor's prime contracts. The program also allows joint ventures between mentors and proteges to pursue set-aside contracts for which the protege qualifies, including those above the simplified acquisition threshold. This allows small businesses to compete for larger contracts than they might otherwise be able to bid on independently. Mentors benefit by developing new relationships, fostering small business growth, and potentially expanding their market reach through the joint ventures.